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Comerica Inc CMA

Morningstar Rating
$49.54 −0.42 (0.84%)
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Company Report

NYCB Was Uniquely Risky; We Would Not Read Too Much Into the Entire Banking Sector

Our thesis on the U.S. banks following the Silicon Bank fallout was that all of the banks we covered, except for First Republic (which we downgraded to a $3 fair value estimate on March 20, 2023, and a $0 fair value on April 27, 2023), would be able to weather the storm. We believed that banks in trouble were in uniquely risky positions. We believe this thesis has largely held up, and sorting through banks based on their unique risk profiles remains necessary and valuable. To the extent that the market is selling off all banks because of what has happened to NYCB, we think there could be opportunities once again while acknowledging the significant time horizon risk (how long does it take for the banks to prove to the market they are fine) and the choppy waters that could occur in the meantime (we expect more commercial real estate related loan losses in the future).

Price vs Fair Value

CMA is trading at a 32% discount.
Price
$49.54
Fair Value
$86.00
Uncertainty
High
1-Star Price
$345.55
5-Star Price
$21.80
Economic Moat
Wyvvj
Capital Allocation
Lltdvxrlm

Bulls Say, Bears Say

Bulls

Comerica's valuation is not demanding. It should not take heroic performance for the bank to rerate higher.

Bears

Comerica's previous attractiveness was based on a positive sensitivity to rising rates. This part of the story is over.

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News

Trading Information

Previous Close Price
$49.96
Day Range
$49.1449.99
52-Week Range
$28.4071.66
Bid/Ask
$49.35 / $49.45
Market Cap
$6.53 Bil
Volume/Avg
2.1 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
5.77
Price/Sales
1.86
Dividend Yield (Trailing)
5.73%
Dividend Yield (Forward)
5.73%
Total Yield
5.73%

Company Profile

Comerica is a financial services company headquartered in Dallas. It is primarily focused on relationship-based commercial banking. In addition to Texas, Comerica's other primary geographies are California and Michigan, with locations also in Arizona and Florida and select businesses operating in several other states as well as Canada.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Small Core
Total Number of Employees
7,649

Competitors

Valuation

Metric
CMA
WFC
FITB
Price/Earnings (Normalized)
5.778.979.31
Price/Book Value
1.111.051.34
Price/Sales
1.862.192.67
Price/Cash Flow
4.856.534.58
Price/Earnings
CMA
WFC
FITB

Financial Strength

Metric
CMA
WFC
FITB
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
CMA
WFC
FITB
Return on Assets (Normalized)
1.43%1.04%1.29%
Return on Equity (Normalized)
25.15%12.17%17.65%
Return on Invested Capital (Normalized)
Return on Assets
CMA
WFC
FITB
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Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRHfl$70.0 Bil
USB
U.S. BancorpWbqjp$64.4 Bil
ITUB
Itau Unibanco Holding SA ADRBys$62.9 Bil
PNC
PNC Financial Services Group IncJtkmdm$58.1 Bil
ISNPY
Intesa Sanpaolo ADRQjrw$58.1 Bil
TFC
Truist Financial CorpZbcngmg$47.0 Bil
MFG
Mizuho Financial Group Inc ADRJmwng$46.2 Bil
LYG
Lloyds Banking Group PLC ADRPqgkf$36.9 Bil
BBD
Bank Bradesco SA ADRNxpkl$28.1 Bil
DB
Deutsche Bank AGSljq$26.9 Bil

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